Chinese buyers paid 30% ABSD for New Futura, Yong An Park, instead of 60% as reported

2 high-end apartment units in top District 9 have just recently been acquired by foreign buyers, despite the recent hikes in additional buyer’s stamp duty (ABSD) that came into impact on April 27. According to Lee Sze Teck, senior supervisor of research at Huttons Asia, a crosscheck with URA’s review of real estate investments by nationalities as well as residential position present that the units were obtained by Chinese nationals that are not Permanent Residents (PRs).

Avenir Condo Guocoland and Hong Leong

One of the residential properties is a four-bedroom, 2,691 sq ft unit at New Futura, a freehold condominium along Leonie Hillside Road in District 9. Based upon URA records, a caveat was lodged for the sale of the unit, situated on the 24th level, on May 3 for $12.5 million. At $4,645 psf, it marked a new psf-price top for the 124-unit, freehold progression by developer City Developments Ltd that was completed in 2017.

Units at New Futura consist of a mix of two-bedroom houses of 1,098 sq ft to four-bedroom apartments of 2,691 sq ft with double-volume roofs. There are even two 7,836 sq ft penthouses– one at the top of each high rise.

The vendor of the unit at Yong An Park generated a gain of $4.5 million on the deal. The unit had transformed hands recently for $9.58 million ($1,241 psf) in February 2008. Therefore, the vendor made a 47% capital acquire right after keeping the residential property for 15 years.

New Futura, situated around Leonie Hill Roadway, is a twin 36-storey tower non commercial development developed by American architecture firm Skidmore, Owings and Merrill (SOM), the style architect for high-end property developments Wallich Residence and even Skywaters Residences in Tanjong Pagar.

Finished in 1986, Yong An Park has an overall of 288 homes. Normal units comprise one- to four-bedders between 1,023 sq ft and 3,778 sq ft. Generally there are three- to five-bedroom penthouses with measurements from 3,466 sq ft and 6,878 sq ft, as well as a collection of six-bedroom, strata-titled townhouses from 7,718 sq ft. The development is a five-minute stroll to the Great World MRT Station on the Thomson-East Coast Line.

Based upon the brand-new cooling measures, an ABSD rate of 60% would relate to foreign investors. Nonetheless, for transactions where the choice to investment was approved to the purchaser on or prior to April 26 as well as worked inside 21 days (i.e. on or before May 17), the brand-new fees can not use. Therefore the Chinese purchaser for the New Futura unit paid an ABSD rate of 30% or $3.75 million for the purchase.

The seller of the unit at New Futura acquired the unit in January 2018 for $9.13 million ($3,395 psf). Thus, the return from the revenue was $3.37 million (37%) after a five-year holding period. This is the most profitable resale transaction at New Futura to period. It goes beyond the previous gain of $2.96 million embeded in December 2022. It was for the sale of a 2,691 sq ft unit offered for $12 million ($4,459 psf).

The other deluxe condo residence that was gathered up by a Chinese buyer is a six-bedroom townhouse unit at Yong An Park, a property development on River Valley Roadway. A caveat was lodged on May 5 for the sale of the 7,718 sq ft estate for $14.08 million ($1,824 psf). Similar to the unit at New Futura, the buyer of the Yong An Park unit paid an ABSD of 30% ($4.2 million) on the purchase, as the alternative was worked out before May 17.

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